Section 7855 Of Article 1. Security For Tax From California Revenue And Taxation Code >> Division 2. >> Part 2. >> Chapter 6. >> Article 1.
7855
. (a) The Controller may, by notice of levy served personally
or by first-class mail, require all persons having in their
possession, or under their control, any payments, credits other than
payments, or personal property belonging to a supplier or other
person liable for any amount under this part to withhold from these
credits or other personal property the amount of any tax, interest,
or penalties due from the supplier or other person, or the amount of
any liability incurred by them under this part, and to transmit the
amount withheld to the Controller at the time it may designate. The
notice of levy shall have the same effect as a levy pursuant to a
writ of execution except for the continuing effect of the levy, as
provided in subdivision (b).
(b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
(c) The amount required to be withheld is the lesser of the
following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "payments" does not
include earnings as that term is defined in subdivision (a) of
Section 706.011 of the Code of Civil Procedure or funds in a deposit
account as defined in paragraph (29) of subdivision (a) of Section
9102 of the Commercial Code. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the supplier or other person
liable for the tax.
(3) Any other payments or credits due or becoming due the supplier
or other person liable as the result of written or oral contracts
for services or sales whether denominated as wages, salary,
commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.